A recent Bankrate survey reveals that 33% of shoppers plan to spend less this holiday season compared to last year, while 24% intend to spend more. The remainder expects their spending to remain unchanged.
“It seems that holiday shoppers will be more frugal this year, as multiple years of high inflation and high interest rates have taken a considerable toll,” said Ted Rossman, senior analyst at Bankrate, an independent consumer financial services company.
The survey also indicates that people are beginning their holiday shopping earlier this year, possibly in search of discounts. Nearly half of the respondents (48%) plan to start shopping before Halloween, with the rest waiting until November (37%) or December (15%).
“While some people scoff that the holiday shopping season seems to start earlier every year, getting off to an early start gives you more time to comparison shop for the best deals and spread out the impact of your purchases,” Rossman added.
Online shopping is favored by nearly half of consumers (42%), whereas 23% prefer in-person shopping. The use of debit cards has risen to 58%, up from 52% last year, potentially due to record-high credit card interest rates.
The survey also found that the holiday shopping season brings stress for some individuals. Twenty-eight percent reported that shopping costs cause them stress, an increase of three percentage points from 2023. Sixteen percent feel pressured to spend more than they should, also up by three percentage points from last year.
Additionally, 27% of shoppers indicated they would take on debt through carrying a credit card balance or using a buy now pay later service for their holiday purchases.
